Consequences of Sustainable Agricultural Productivity, Renewable Energy, and Environmental Decay: Recent Evidence from ASEAN Countries

Abstract

Agriculture is critical for meeting the needs of the world’s population, in terms of food production. As a result, it has become a significant contributor to economic growth. According to various studies, agricultural production is one of the most widely recognized sources of greenhouse gas (GHG) emissions globally. This study explores the causal link between aggregate energy consumption resources, trade liberalization, CO2 emissions, and modern agriculture in selected ASEAN nations from 2000 to 2020, through the use of panel FMOLS data from the United Nations Development Program (fully modified ordinary least square). According to scientific research, the value addition of agricultural commodities helps to reduce CO2 emissions in polluted countries such as the United States. In addition, it was revealed that the quantity of CO2 released per unit of energy spent was positively associated with the amount of energy consumed. The reduction of CO2 emissions is possible in nations where environmental pollution is reducing due to trade liberalization. Although fossil fuels have increased CO2 emissions, research has shown that adopting renewable energy can help mitigate environmental damage. Revenues and productivity in agriculture are increased due to climate-smart agricultural-favored institutions, while greenhouse gas emissions are reduced. As an example of renewable energy, new energy resources may contribute to the preservation of a clean and healthy environment. The use of renewable energy in agriculture reduces the dependency on fossil fuels, which is beneficial for farmers. Trade policy, on the other hand, may stimulate the movement of money and technology, in order to specialize in economies of scale and manufacturing. It is imperative that ASEAN countries examine policies that will improve living standards, while also protecting the environment. This includes measures that will stimulate agricultural sector production and create active marketplaces for international trade.